A 16th-CENTURY ale house which was later transformed into Victorian tea rooms is now vying for the crown of Britain's oldest housing association property.

The timber-framed town house, known as Ye Olde Edgar, is in Lower Bridge Street - just a few minutes walk from the city of Chester's famous Rows.

The architectural gem would normally command a rental of about £1,250 per month on the open market but in fact tenants pay only a fraction of that amount.

That compares to a one-bedroom mews house nearby which is available to rent through estate agents for £575.

Ye Olde Edgar was owned by Chester City Council but was transferred to Chester and District Housing Trust 18 months ago, along with the rest of the council's stock.

The Trust's Dave Smith said: "It is the oldest house in our property stock and we've got 6,800.

"Rent is paid according to a points system, such as the number of bedrooms, central heating and is not related to age.

He added: "And despite its age, the rent isn't paid in groats."

Stephanie Hinks, of Molyneux estate agents in Chester, said similar properties in the heart of Chester could sell for as much as £300,000 on the open market.

She said: "You could really name your price with this kind of property, within reason.

"History is important to Chester. "The houses are inside Chester's City Walls which carries a lot of kudos with home buyers.

"There are many residential properties inside the walls and you can't get much more in the heart of Chester than Lower Bridge Street."

Ye Olde Edgar was a 16th century inn on the corner of the street and although it was not used by travellers on the Chester to London route, it was popular with patrons on horseback, judging from the mounting block on one side of the house.

In the early 1900s, it was transformed into Victorian tea rooms before it was bought by Chester City Council and split into two properties for its housing stock.

The house is part of Chester's rich history.

Gamul House, home of Chester's Gamul family, is just two minutes' walk away.

King Charles I is reputed to have stayed there the night before his army was defeated in the Battle of Rowton Moor in September, 1645. Eileen Wilson, Chester City Council's heritage development manager, said: "There are very few living in such historical houses in the centre of Chester.

"You quite often see these type of houses in rural Chester but it is the only one of a few in the city.

"The tenants are very lucky people."

A Local Government Association spokeswoman said: "We think this is the oldest property of its type in the country."

Ye Olde Edgar just shades Yeoman Cottage on West Derby Road, which was built in 1615, and is thought to be Liverpool's oldest council house.

Liverpool City Council has 38,000 properties and most of its unusual ones were acquired by the council when it bought large tracts of land during the 1920s.

Sefton Park Lodge on Greenbank Drive was built by the council in 1870 and was occupied by council workers who looked after the park.

Allerton Tower Lodge was built in 1849 and stands at the entrance to the park and was bought by the council over 80 years ago.

Majorie and Frederick Tate moved into the lodge 38 years ago and could not imagine living anywhere else.

Mrs Tate, 61, a retired shop worker, said: "It was great for the children when they were little because they had a huge park right on their doorstep. At night we can hear owls in the trees."

Thomas Breen has been the tenant at Woolton Woods Lodge on Woolton High Street for 22 years.

Mr Breen, 71, a retired cemetery superintendent, said: "The house is Victorian and used to belong to a wealthy landowner.